a) Explain, with reasons, any three of the following statements:

i) Capitalism is a price-directed economic system.
ii) Generally, a demand curve slopes downwards to the right
iii) If a given change in price does not cause any change in the total amount of money spent on the commodity, the elasticity of demand is said to be equal to unity.
iv) The long-run normal price will be equal to both average and marginal costs of production of every perfectly competitive firm.

b) Distinguish between 'positive economics' and 'normative economic'.

c) Show diagrammatically the distinction between 'expansion in demand' and 'increase in demand'

a) What do you mean by the consumer's equilibrium? Show the determination of consumer's equilibrium with the help of indifference curves.

b) Define 'isoquant'. Distinguish between 'increasing returns to scale' and 'diminishing returns to scale' with the help of isoquants

(8 marks)

(7 marks)

a) How is the long-run equilibrium position of a perfectly competitive firm different from that of a monopolistic competitive firm? Explain with the help of diagram(s).

b) Examine the relative merits and demerits of direct and indirect taxes.

(8 marks)

(7 marks )

a) Distinguish between 'economic growth' and 'economic development'. Examine the limitations of per capita income as an index of economic development.

b) Examine the different methods of correcting disequilibrium in the balance of payments of a country.

(8 marks)

(7 marks )

a) Discuss the role of public sector in India's economic development.

b) "Internal resources alone are not sufficient, foreign capital is also needed to accelerate economic development" Comment.

(8 marks)

(7 marks )

a) Discuss any two of the following:

i) Characteristics of statistics
ii) Stages of statistical enquiry
iii) Group frequency distribution
iv) Business forecasting.

b) Marks obtained by 100 students in Economics are given below. Draw an appropriate graph to represent them:

b) Calculate the median and mode from the following data:

a) From the following data, calculate price index numbers for the year 1999 with 1991 as the base year by using -

i) Laspeyre's method;
ii) Bowley's method; and
iii) Fisher's ideal index method.

b) Using the following data, fit a trend line by the least squares method and estimate the sales for the year 2000.

a) State, with reasons, whether the following statements are correct or incorrect (Attempt any three):

i) A deficit in balance of trade implies a deficit in balance of payments.
ii) The firm under perfect competition has no say in the determination of the price of the product.
iii) According to ordinal utility concept, it is possible to measure and compare the utilities of two commodities.
iv) Gross National Product (GNP) includes the total value of all finished goods and services including their component parts produced in the nation during the year.

b) "Economics is a science or an art depending on who uses and for wat purpose" - Discuss.

a) i) From the following data, calculate the average variable cost for all levels of output:

ii) Can the average cost be falling while marginal cost rises? Illustrate with the help of a diagram.

b) How would you determine price and output under the monopolistic competition in the long run?

(4 marks)

(4 marks)

(7 marks)

a) Explain the principle of maximum social advantage. State limitations of this principle.

b) Explain modern theory of international trade. State assumptions of Heckscher - Ohling theory of international trade.

(6 marks)

(9 marks )

a) Outline the difficulties confronted in the estimation of national income in India.

b) "Inflation in India is a mix of 'cot push' and 'demand pull' factors". Examine this statement

(8 marks)

(7 marks )

a) State the importance of small scale and cottage industries in India. Explain the problems faced by these industries.

b) Write short notes on any two of the following:

i) Deficit financing
ii) Role of foreign aid
iii) Industrial policy of India
iv) Devaluation

(7 marks)

(4 marks )

a) "Statistics can prove anything" Examine

b) Show the details of monthly expenditure of two families as given below by means of suitable diagrams.

a) Calculate arithmetic mean and median for the following data:

b) What is "geometric mean'? What are its uses?

a) Construct Fisher's Price Index for the year 1997 from the following data taking 1992 as the base year:

b) Explain the importance of 'time series data'.

(9 marks)

(5 marks)